SPRINGVILLE — Springville's 2010 fiscal-year budget dropped about $500,000 last week, after some cash shuffling to make it legal.

That put the final adopted general-fund budget at $15.3 million, city finance officer Dave Allen said.

Springville found itself in excess of 18 percent of its general-fund reserves, with a surplus of more than $500,000, most of which apparently came from the Utah Department of Transportation. The money was first identified as compensation for closing 400 South during UDOT's lengthy, $82 million reconstruction project.

However, that money was to help Springville put in a water line, UDOT spokesman Scott Taylor said. The state saved at least that much money by closing the road during construction, Taylor said. The water line is valued at $1 million, and Springville is expected to kick in another $250,000.

"We fully expect to get that money back," Taylor said, "and $250,000 more."

According to state law, cities can keep no more than 18 percent of its general fund in reserves.

So Allen moved it to a capital-improvement fund, where it can sit until the city needs to use it on the road project. Earlier, Allen said the $500,000 "windfall" would go to help the city balance its current fiscal-year budget.

But after opening its 2008-09 budget in February, the city balanced its budget with other reductions, Allen said Monday.

Some of the savings came from salaries when people quit, though the city is refilling some positions.

Because of the UDOT cash infusion, revenues for the 2008-09 fiscal year rose from $16.5 million to $16.8 million, while expenses dropped from $16.5 million to $16.3 million, Allen said.

The total 2009-10 budget is $53.6 million.

UDOT is rebuilding 400 South between I-15 and 400 West from two lanes to five lanes and an overpass over the railroad tracks. The department expects to have the project completed by this fall. The project includes:

Rebuilding the existing freeway interchange as a single-point urban interchange.

Adding an auxiliary lane along southbound I-15 between the two Springville interchanges.

Building a new bridge over the Union Pacific railroad tracks at 1500 West.

Widening 400 South from I-15 to Main to five lanes, and rebuilding the bridge at 400 West.

E-mail: rodger@desnews.com